WorldWide Drilling Resource

27 WorldWide Drilling Resource ® FEBRUARY 2017 Increased Construction Drives Up Demand for Met Coal Compiled by Editorial Staff of WorldWide Drilling Resource ® Construction projects may often be seen by some as a messy hindrance to society, but they are major influences to increasing economic growth for businesses, cities, and nations worldwide. When it comes to the coal sector, construction can be a major player in increasing demand for certain types of coal, such as met- allurgical (met) coal. Met coal, also named coking coal, is an excellent fuel source to make steel because it burns hot and clean. Thus, increased construction and infrastructure projects will lead to a greater demand for steel and the met coal used to create it. Prices for met coal have already begun to rise largely because of China’s influence in the market, but increased demand is sure to bolster the price as well. New Colombia Resources Inc. is one such company which has benefitted from increased demand in met coal due to increased construction. The company is focused on the acquisition and development of high-quality met coal producers in Colombia, where demand is currently high for building material as new construction projects and infrastructure begin to be approved. Corsa Coal Corp., headquartered in Canonsburg, Pennsylvania, is another company showing significant gains in rev- enue from met coal production due to increased steel demand.The company recently stated, “Corsa plans to increase pro- duction and sell significantly more tons of metallurgical coal over the coming quarters.” Increased production might just become a reality for Corsa because spot prices for met coal have risen almost 250% on a year-to-year basis, and there has been great improvement in global steel prices. Corsa’s met coal has quickly garnered the attention from both domestic and international steel companies looking to fill their increased demand. All current indications seem to predict as more infrastructure and construction get underway worldwide met coal will expe- rience an increased demand, and the companies will benefit greatly. The market is trending toward cleaner burning fuels and away from fuels heavy in carbon content, and met coal is already in demand with sales ready to take off. As the world changes with increased construction and infrastructure, met coal looks to be the force behind the scenes creating much of the metal used to reshape our world. Open the Doorway to all the Event Photos during the 2016 Las Vegas Water Expo. To see all the pictures from this event, go to: www.worldwidedrillingresource.info/gallery/2016/LVWE2016, or just click here. Feel free to download at will and print the photo(s) of your choice. Compliments of WorldWide Drilling Resource ® . Photos are copyrighted and released for personal use only - no commercial use permitted.